BRITISH TRADE REVIEW

Dominion, Volume 19, Issue 97, 19 January 1926, Page 7

BRITISH TRADE REVIEW

DULL PERIOD ON STOCK EXCHANGE

DUE TO PLETHCRA OF, NEW, ISSUES GILT-EDGED SECURITIES STEADY The London Stock Juxciiange was dull during the first fort, night of the New Year, largely as a result of the plethora of new issues, but colonial stocks were well maintained.

By Telegraph. —Press Association. —OOPTBIGHT.

London, January 16.

The first fortnight of the New Yea; has been a dull period on the Stock Exchange, and business all round has been on a small scale. this is largely due to the plethora of new issues, which have directed attention from existing securities and fears that a rise in the bank rate might be necessary, following the increase m New York. This fear has proved unfounded, for the present at any rate, and markets closed steady, especially for gilt-edged securities, a noteworthy feature being that colonials were well maintained, despite the poor response to the Queensland and bouth Austia lian loans.

Improi Jment in Butter Trade.

The rntter n rkel is at last s, '°' vin £ some signs of activity, and _ trade last week was fairly brisk at prices six to eight shillings above the previous level. Importers are hoping that the improvement will be maintained and shippers apparently have firm idea., foi- a considerable quantity of recent arrivals from Australia and New Zealand are being held awaiting their instructions. It IS reported that the Australian and New Zealand Control Boards are reducing shipments, and, if this is the case, the market should harden, especially if estimates that New Zealand arrivals wifi show a considerable shortage, compared with 1924, are realised. The Wool Position. The wool trade does not expect the first series of sales, opening on Tuesday, to show any great divergence in values from the last sale of 1925. Ihe “Economist’s” Bradford correspondent points out that if Continental buyers are able to operate at all freely, there should be no difficulty in maintaining values, but there is some room for doubt whether these countries will be able to give their usual support. So long as there is any possibility of lower values, users will simply buy from hand to mouth. But there is reason to believe that firmness in wool would bring out a considerable amount of latent business in semi-manufactur-ed and fully-manufactured goods.

Little Change in Values Expected.

Another expert writes: “One reason whv I do not expect any great change is "that the figure published by Dalgety’s show that the amount of Australian wool on the way to Europe is quite adequate. No complaints are now heard in consuming centres about smallness of stocks. This points to no higher values being paid, while the probability of much of a decline in merinos is precluded by the fact that merino tops are leaving combers as fast they are being produced. This indicates a . large consumption in the West Riding, and we should say merino wool is now being shipped on a larger scale than for the past two years.”

Increased Wool Exports from Russia.

A notable feature of the trade returns for 1925 is the indication they, afford of an approach to normal transactions with Russia in wool produced in that country. In 1924 the quantity, of wool exported to England from Russia was only 787,000 pounds, but last year the quantity received from this source rose to 7,210,000 pounds.: This represents something in the region of the pre-war normal volume, if the trade done in the last two prewar years be accepted as a reasonable criterion. Australian Wino Trado. Optimistic reports, cabled from time to time regarding the improvement in the Australian wine trade, are fully, borne out by official figures, which show that both imports and consumption are largely in excess of the previous year’s. The total imports of Australian wine in 1925 amounted to 1,054,000 gallons, compared with 824,000 in 1924, and 706,000 in 1923. The consumption of Australian wines in the United Kingdom was 782,000, compared with 611,000 in 1924 and 628,000 in 1923. This increase in consumption by 171,000 gallons is particularly noteworthy, as the consumption of wine from other British possessions in 1925 was less than in 1921, being 215,000 gallons, as against 220,000. Australian Egg Trade Damaged by Strike. The Australian egg season is closing somewhat unfortunately, the best price obtainable for the Sophocles parcel being only about 15s. per 120. The slump in Australian eggs is largely due to a general fall in prices owing to heavy supplies from all sources, but it is accentuated by the presence on the market of several unsatisfactory parcels which were held up in Australia by the shipping strike. These are practically unsaleable, and several lots which had been sold have been returned by purchasers. The result is that Australian eggs for the moment have got a very bad name.— Aus.-N.Z. Cable Assn.